Here me out:
If Pirate indeed pays out all lenders then it would open up the market for Ponzi schemes. More people would have reason to believe high intrest returns with no public business plan.
If Pirate defaults people will become more aware that Ponzis exits in the Bitcoin economy and this will lead to more skepticism of long term deposits with high return rates.
someone once told me a story about furniture sales... basically when you think about it some furniture lasts for 10 or 20 years, so how can there be so much demand for new furniture day in day out?
because households are constantly changing, new people are being born and new people are moving in and out of the area.
with bitcoin, there will always be a constant inflow of new people and history will repeat itself.